Life Insurance Simplified

A Critical Illness Rider- An Attractive Add-On to a Life Insurance Policy

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Vaibhav (28) is a software engineer and being in a private sector he is facing stress and pressure of completing the target every month. Due to this, he was suffering from severe chest pain. One day he collapsed and he was diagnosed by a stroke. Vaibhav’s family was dumbstruck as they had no clue from where they will incur the expenses of the hospital. But thanks to Vaibhav’s friend who had suggested him to buy a term plan with critical illness rider without any delay.

Critical illness is a life changing event which hinders our dreams and wipes out all our savings. Due to the change in lifestyle, the count of critical and life-threatening illnesses are only increasing and inviting the burden of expensive treatment. Affordability towards critical illness treatment from a critical care hospital becomes major concern for many. Critical illness may also result in loss of income, change in life style. If someone is diagnosed with a critical illness, he may take ample to time to recover and start earning. This will directly impact the family income. The financial hardships due to exorbitant medical costs coupled with loss of income become difficult to cope with.

To combat this issue, one needs to plan for a critical Illness cover to meet the large medical cost as well as a compensation for meeting day to day expenses. A critical illness cover acts as an income replacement preventing a financial crunch.

Critical illness Rider is an additional benefit in which Insurer pays a lump sum amount if the policyholder is diagnosed with one of the critical illnesses mentioned in a predetermined list as a part of an insurance policy. While the financial benefit is paid against the Critical Illness Rider, the basic policy remains in force even after such a claim payment. This means, that the life cover will still be active.

People should consider taking Critical Illness, since they are more likely to suffer a critical illness due to sedentary lifestyle and stress levels. Different people will need such a cover for different reasons. If someone is single, he or she might want a policy to ensure his/her mortgage is paid. If someone is married, the person may want to ensure his or her family is provided for if he or she cannot work due to illness.

Critical illness rider along with a life insurance policy is more beneficial than a standalone Critical Illness Health Plan in many ways;

  • It is usually economical and flexible to buy a critical illness rider alongside a life insurance policy. According to the paying capability, one can choose the benefit sum.
  • No need to renew the policy separately.
  • The payout is tax-exempted
  • Premium remains same for the entire duration of the base policy and therefore tends to be cheaper than an indemnity plan.
  • The financial burden due to an acute illness will be far more than what an Indemnity health Plan would cover.

So, adding a critical illness rider is the best way to get over the shortcoming. Thus investing in life insurance plan with a combination of critical illness rider safeguards an individual from the unexpected financial burdens.

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